CEE-focused property landlord Immofinanz warned on Thursday that the value of its investment portfolio is set to decline by €45 mln in the first quarter of the year as a result of the Covid-19 pandemic.
As a consequence, the company expects to post a loss for the period, versus a net profit of €30 mln in the first quarter of 2019.
‘This is primarily attributable to the slight increase in market yields, above all in the retail sector,’ Immofinanz said in a statement, commenting on the negative revaluations.
The commercial property landlord added, however, that it continues to forecast a ‘substantial’ improvement in rental income. Immofinanz will release its first-quarter financial results on 27 May.
Last month, the firm appointed Austrian entrepreneur Ronny Pecik as its new CEO, replacing Oliver Schumy who left in March for personal reasons.
Pecik, who started in the position on 4 May, is a minority owner with an 11% stake in the company together with business partner, Slovak property mogul Peter Korbacka. He is also a shareholder in Immofinanz’s cross-town peer ‘S Immo, with a 14% stake together with a partner.
Born in Croatia and raised in Austria, the 58-year-old entrepreneur bought the €300 mln stake in February in a move which is widely expected to usher in merger negotiations between Immofinanz and ‘S Immo. The two companies ended talks in late 2019 as they could not reach an agreement over a possible share exchange ratio.